JUDGMENT
[1] The appellants, who were defendants in the High Court are appealing against the decision of the Court of Appeal by posing four legal questions before us.
[2] The appeal before us relates to the issue involving a body incorporated under Menteri Besar Selangor (Incorporation) Enactment 1994 (MBI Enactment).
[3] In this judgment, parties will be referred to, as they were, in the High Court.
[4] The plaintiff is a body incorporated under the MBI Enactment and is known as Menteri Besar Selangor (Pemerbadanan). The defendants were former employees of the plaintiff. The 1st defendant, Faekah Binti Haji Hassan was employed as the Chief Executive Officer(CEO), the 2nd defendant, Rohany Binti Dato' Talib was holding the position as the Chief Operating Officer (COO) and the 3rd to 8th defendants were all officers holding various positions in the plaintiff. They were all employed under their respective contracts of employment.
[5] The then Menteri Besar of Selangor, Tan Sri Dato' Seri Abdul Khalid Bin Ibrahim (TSKI) as a Menteri Besar (Pemerbadanan) had approved payment in the sum of RM2,713,590.00 to be paid to the defendants under a Voluntary Separation Scheme (VSS Payments). He did not seek any approval of the plaintiff's Board of Directors (BOD). According to the plaintiff, its Board of Directors (BOD) constituted the Menteri Besar Selangor, the State Secretary and the State Financial Officer.
[6] The VSS Payments was approved prior to his resignation as the Menteri Besar on 23 September 2014. Consequently, the VSS Payments were paid and received by all the defendants.
[7] The plaintiff subsequently initiated these proceedings in the High Court against all the defendants to recover the VSS Payments received by them, pleading that they were unlawful payments. The alleged unlawfulness was predicated on the fact that TSKI had approved the payment without the approval of the plaintiff's BOD. Instead, it was alleged that the 1st defendant and the 2nd defendant had conspired to injure the plaintiff in making that unauthorised and unapproved payment to the other defendants. In conspiring to injure the plaintiff, the 1st and 2nd defendants were said to have breached their fiduciary duties to the plaintiff which resulted in an unjust enrichment to each of the defendants.